The Philippines has invited India to source nickel for battery production. By doing so, it aims to reduce its heavy reliance on China, which currently accounts for 98% of its nickel exports. Moreover, Filipino Foreign Minister Enrique Manalo emphasized the importance of diversifying trade partnerships.
Call for Stronger Trade Ties
Manalo emphasized the need for both nations to accelerate negotiations for a Preferential Trade Agreement (PTA). At a FICCI event, he emphasized Manila’s eagerness to strengthen business ties with India. Specifically, he highlighted key industries such as automobiles, batteries, and IT services. Moreover, he stressed the importance of collaboration in pharmaceuticals, healthcare, and agriculture.
India’s Push for Battery Production and Critical Minerals
India has been actively working to boost battery production as part of its electric vehicle (EV) expansion and clean energy transition. To secure the necessary raw materials, India has already been negotiating with countries like Australia and Argentina for access to rare earth minerals. Currently, China dominates the supply chains for these critical resources.
Philippines’ Growing Role in Global Nickel Supply
The Philippines contributes eleven percent to global nickel production and ranked as the world’s second-largest producer in 2023. Manalo stressed the strategic importance of developing the country’s nickel sector with Indian participation.
Expanding Nickel Exports for Battery Production
As the world’s largest exporter of nickel ore, the Philippines exported $1.95 billion worth of nickel in 2023, primarily for lithium-ion battery production. As reported by msn.com, with growing demand for sustainable energy solutions, India and the Philippines could strengthen cooperation to build a more resilient and diversified supply chain for battery manufacturing.
